Dell Technologies will join the ranks of technology companies slashing jobs as the computer maker plans to shed 5% of its workforce.
The company disclosed the cuts in a note to employees, which was also filed with the Securities and Exchange Commission Monday morning.
“What we know is market conditions continue to erode with an uncertain future,” Jeff Clarke, Dell’s
DELL,
-0.42%
co-chief operating officer, said in the message. “The steps we’ve taken to stay ahead of downturn impacts – which enabled several strong quarters in a row – are no longer enough. We now have to make additional decisions to prepare for the road ahead.”
Dell had 133,000 employees as of Jan. 28, 2022, according to its last 10-K filing. The layoffs would amount to 6,650 impacted employees if the company’s staffing levels have stayed constant since the time of the last 10-K.
MarketWatch has reached out to Dell about its latest employee count.
Also read: More than 86,000 tech-sector employees have lost their jobs since the start of the year
Clarke shared that the job cuts are among a number of “resets” Dell is making to contend with current economic circumstances. The company will also do a sales realignment and change how it integrates support services, according to the memo.
Dell
DELL,
-0.42%
shares have gained 5% this year, underperforming the broader 15% rise for the Nasdaq Composite
COMP,
-1.59%.
Rival computer maker HP
HPQ,
-0.91%
said in November that it would cut up to 6,000 jobs, one of several tech companies to announce layoffs.
The tech sector pink slips have yet to show up in the government’s jobs report, as the Labor Department reported a blockbuster 517,000 rise in nonfarm payrolls for January.
Read: Here’s why the jobs report was so good despite Big Tech layoffs
